Travel & Tourism - Uruguay

Uruguay

The Travel & Tourism market in Uruguay is expected to experience a significant increase in revenue in the coming years.
It is projected to reach US$256.00m in 2024, with an annual growth rate (CAGR 2024-2029) of 6.25%, resulting in a projected market volume of US$346.60m by 2029.
Within the market, the largest market is the Package Holidays market, which is expected to generate a projected market volume of US$101.60m in 2024.
By 2029, the number of users in the Package Holidays market is expected to amount to 904.00k users.
It is important to note that user penetration is projected to increase from 32.7% in 2024 to 40.3% by 2029.
The projected average revenue per user (ARPU) in the Package Holidays market is US$228.80.
Moreover, it is expected that 77% of the total revenue in the Travel & Tourism market in Uruguay will be generated through online sales by 2029.
In a global comparison, United States is expected to generate the most revenue, with US$214bn in 2024.
Uruguay's Travel & Tourism market is seeing a rise in sustainable and eco-friendly tourism, with a focus on rural areas and coastal regions.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Market

Region

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Currency

Analyst Opinion

Uruguay, a country known for its beautiful beaches and rich cultural heritage, has been experiencing a significant growth in its Travel & Tourism market.

Customer preferences: Travelers in Uruguay are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. This shift in preferences has led to a rise in demand for sustainable and eco-friendly tourism options, as visitors become more conscious of their environmental impact.

Trends in the market: One notable trend in the Travel & Tourism market in Uruguay is the growing popularity of adventure tourism. Tourists are now looking for adrenaline-pumping activities such as surfing, trekking, and horseback riding, contributing to the development of adventure-focused tour packages and services across the country. Additionally, wellness tourism is on the rise, with an increasing number of travelers seeking relaxation and rejuvenation through spa retreats and yoga sessions in Uruguay's serene natural settings.

Local special circumstances: Uruguay's stable political environment and commitment to promoting tourism have played a crucial role in driving the growth of the Travel & Tourism market. The government's efforts to improve infrastructure, enhance safety measures, and preserve the country's natural beauty have made Uruguay an attractive destination for both domestic and international tourists. Furthermore, the country's unique blend of European and Latin American influences offers visitors a culturally rich experience that sets it apart from other destinations in the region.

Underlying macroeconomic factors: The steady economic growth and increasing disposable income levels in Uruguay have contributed to the expansion of the Travel & Tourism market. As more Uruguayans have the financial means to travel, there has been a rise in domestic tourism expenditure, boosting the overall industry. Additionally, favorable exchange rates and government incentives for tourism development have attracted foreign investment, leading to the establishment of new hotels, restaurants, and tour operators in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.